HomeMy WebLinkAboutNo. 2087 pledging certain tax increment revenues to the payment of the COSB taxable economic development revenue bonds, Series 2004 (Erskine Commons Project)RESOLUTION NO.
2087
A RESOLUTION OF THE SOUTH BEND
REDEVELOPMENT COMMISSION PLEDGING CERTAIN
TAX INCREMENT REVENUES TO THE PAYMENT OF THE
CITY OF SOUTH BEND, INDIANA, TAXABLE ECONOMIC
DEVELOPMENT REVENUE BONDS, SERIES 2004
(ERSKINE COMMONS PROJECT)
WHEREAS, the South Bend Redevelopment Commission (the "Commission "),
the governing body of the City of South Bend, Indiana, Redevelopment District (the "District ")
and the City of South Bend, Indiana, Department of Redevelopment, exists and operates under
the provisions of Ind. Code § 36 -7 -14, as amended from time to time (the "Act "); and
WHEREAS, the Commission has previously (i) designated and declared an area
in the City of South Bend, Indiana (the "City "), known as the South Side Development Area to
be a blighted area within the meaning of Ind. Code § 36 -7 -14; (ii) established Allocation Area
No. 2 (the "Area "), a portion of the South Side Development Area, to be an allocation area for
the purpose of separately accounting for the tax increment revenues derived from the Area; and
IL (iii) created an allocation fund for the Area (the "Allocation Fund ") for purpose of tax increment
financing; and
WHEREAS, on July 27, 2004, the Commission adopted Resolution No. 2074 (the
"Senior Resolution "), authorizing the issuance of tax increment revenue bonds of the District (the
"Senior Bonds ") payable solely from the tax increment revenues allocated to the Commission
and resulting solely from the increase in the assessed value of real property and improvements
thereon located in the Area and from the proceeds from the sale or leasing of property in the
Area, under Ind. Code § 36- 7 -14 -22 and deposited into the Allocation Fund, as required by Ind.
Code § 36- 7 -14 -26 as a result of the Project (as defined herein) (the "Project Tax Increment
Revenues "); and
WHEREAS, the City intends to issue its taxable economic development revenue
bonds pursuant to Ind. Code § 36 -7 -11.9 and 12 to be known as the "City of South Bend,
Indiana, Taxable Economic Development Revenue Bonds, Series 2004 (Erskine Commons
Project)" (the 'Bonds "), the proceeds of which are to be used to finance a portion of the costs of
(i) the relocation of power lines, petroleum pipelines and other utility structures, (ii) the
demolition of existing structures, (iii) the filling and compaction of fill on the site, and (iv) such
other improvements (collectively, the "Improvements ") that will facilitate the development and
construction of a retail and commercial center (the "Project "), by Anchor South Bend, LLC (the
'Borrower "), at or near the southwest corner of the intersection of Ireland and Michigan Streets
in the City; and
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WHEREAS, the Commission anticipates that the City will loan the proceeds of
the Bonds to the Borrower pursuant to a loan agreement to be entered into by and between the
City and the Borrower; and
WHEREAS, the Commission anticipates that sufficient Project Tax Increment
Revenues will be available to the Commission to pay the principal of and interest on the Bonds
and desires to pledge Project Tax Increment Revenues to the payment of principal of and interest
on the Bonds (the 'Pledge "); and
WHEREAS, the Pledge shall be junior and subordinate to the Senior Bonds, but
senior to all other obligations or indebtedness, if any, secured by Project Tax Increment
Revenues; and
WHEREAS, neither the City nor the Commission shall have any obligation with
respect to the payment of principal of or interest on the Bonds other than the payment of the
Project Tax Increment Revenues;
NOW, THEREFORE, BE IT RESOLVED, by the City of South Bend, Indiana,
Redevelopment Commission as follows:
1. The Commission hereby pledges the Project Tax Increment Revenues to
the payment of the principal of and interest on the Bonds for a period up to but not exceeding
twenty -five (25) years from the date of the issuance of the Bonds. Such Pledge shall terminate at
the earliest of the final payment on the Bonds or the conclusion of said twenty -five (25) year
period and shall be junior and subordinate to the Senior Bonds.
2. The principal and interest account of the Allocation Fund, previously
established by the Senior Resolution, is hereby continued with respect to the Pledge.
3. Project Tax Increment Revenues received by the Commission shall be
deposited into the Principal and Interest Account, as set forth in the Senior Resolution, and the
remaining amounts, after payment of principal of and interest on the Senior Bonds, shall be
appropriated for the payment of the principal of and interest on the Bonds. The Pledge shall be
junior and subordinate to the Senior Bonds, but senior to all other obligations or indebtedness
payable from Project Tax Increment Revenues, if any. Only Project Tax Increment Revenues are
hereby pledged for payment of the Bonds. This resolution shall not be construed as pledging tax
increment revenues of the Area generally. Project Tax Increment Revenues received in any year
in excess of the amount necessary (i) to pay the principal of and interest on the Senior Bonds and
the Bonds currently or scheduled to be due and expected to be paid from such revenues and
(ii) to pay any amount of principal which was not previously paid when due or interest accruing
thereon as a result of an insufficiency in Project Tax Increment Revenues in a prior year or years,
do not remain pledged and may be used by the Commission, in accordance with the Senior
Resolution, for any purpose set forth in Ind. Code § 36- 7- 14 -39.
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4. This Resolution shall be in full force and effect after its adoption by the
Commission and shall not be repealed or amended in any manner which would serve to
adversely affect the pledge of the Project Tax Increment Revenues contained herein.
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ADOPTED at a meeting of the South Bend Redevelopment Commission held on
August 20, 2004, in Room 1308, County -City Building, 227 West Jefferson Boulevard, South
Bend, Indiana 46601.
SOUTH BEND REDEVELOPMENT
COMMISSION
64�"�4'A'
Marcia Jones, Wesident
ATTEST:
Matt kahn, Secretary
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